What can “a little more” do for you?
We’re all told to think big, right? In most cases, that’s a good thing. But when it comes to retention, promotions, and loyalty programs in multi-level marketing, that thinking doesn’t always work. Let me explain.
In past issues, we’ve told you how ‘one size fits all’ sometimes isn’t the best method for your incentive programs. Sure, big prizes and vacations can draw people in, but it can also turn people off.
So, what’s an alternative to the big prizes, big trips, and big incentives when you want to grow your MLM business and improve retention? Think about how just a little more to make a huge impact.
When researching enrollment data with one company, I found that distributors or sales reps who ordered each month were averaging less than one new enrollment per month. The thought hit me, “How can we get these business builders to just do a little more?”
How can we get these business builders to just do a little more?
We then created an enrollment promotion that had incentives for anyone who enrolled three new people in one month. This was attainable while still being a stretch for most people. We added an accountability element in the form of an online standings page, and, boom! By encouraging and incentivizing sales reps to just do a little more, we saw a massive increase in enrollments.
These contests had top prizes to attract heavy hitters, but also had weekly drawings for anyone who did the minimum. With timely recognition via social media and the web and a fun, festive live drawing component, we were able to move the needle significantly without alienating people. Win-win!
By the same line of thinking, an area of opportunity for your multi-level marketing business as a whole is average order size. For example, if the average order size in your company is $100, and you can increase it to $110, your company just grew 10%!
I know what you’re thinking…easier said than done, right?
Not in my experience. With a little ingenuity, effort, and accurate data, increasing average order size is within your reach. This is when proper segmentation data is priceless! When you can segment customers and distributors who are placing regular orders into specific buckets, you can tailor campaigns that speak their language.
Now, you can’t just put out a message asking people to buy more product. You need to be creative and offer value at every turn. People can’t buy what they don’t know about, right?
Start by keeping key add-on products in front of people on a regular basis. Make it easy for people to add a product to a current order. Educate your distributors on the benefits of all your products. Highlight products that may work better together. Use data to target people who may not have tried specific products.
Growing sales and increasing retention for MLM can be as simple as just a little more. A little more data. A little more creativity. And getting the people who love your products and opportunity to just do a little more.
This article was authored by Alex Theis, a direct selling executive who has created campaigns, promotions, and programs that have generated over $40 million in sales to organizations and entrepreneurs.
We’re very excited about these upcoming capabilities in the DirecTech Labs platform. Take a closer look at how DirecTech Labs works.
We have a lot more to share about how you can address your retention problem. It’s probably easier if you read our eBook: How Direct Selling Can Use AI to Solve The Age-Old Retention Problem
Learn how PM-International achieved up to 25% revenue uplift over 6 months by extending the lifespan of its distributors and customers around the world. Download the case study here.